SpaceX launches the largest IPO in US history with xAI baked in
SpaceX starts its investor roadshow today for a $1.75 trillion public debut. The fixed price is $135 per share. Roughly 555.6 million Class A shares hit Nasdaq under the ticker SPCX on June 12. Goldman Sachs leads the syndicate. If it prices as planned, SpaceX becomes the seventh most valuable US company overnight.
The number is aggressive. Morningstar initiated coverage with a fair-value estimate of $780 billion. That is less than half the IPO target. The gap is not subtle. Morningstar flagged uncertainties in the Starlink business and in xAI, the AI lab SpaceX absorbed in February for $250 billion.
The xAI unit is the part that matters for anyone tracking frontier AI economics. SpaceX merged with xAI in February in what CNBC called the largest merger of all time, valuing the combined entity at $1.25 trillion. xAI lost $6.4 billion from operations on $3.2 billion in revenue last year, according to TechCrunch’s reading of the S-1 filing. AI capex climbed to $7.7 billion in Q1 2026 alone. That is an annualized run rate north of $30 billion. xAI is projected to burn roughly $10 billion this year.
Grok had 117 million monthly active users as of March. The S-1 describes plans to scale to “multiple trillions of parameters” on Colossus II, the gigawatt-scale Memphis supercluster running roughly 550,000 NVIDIA GB200 and GB300 GPUs. This is the first time a frontier AI lab’s burn rate and growth economics get priced in public, in real time, alongside rockets and satellite internet.
The American Federation of Teachers asked the SEC to apply what it called “extraordinary scrutiny” before pension money flows in. AFT president Randi Weingarten called the IPO valuation one that “defies financial logic” and noted SpaceX’s offering price sits at 200x cash flows. Three of four known pre-IPO board members have personal or financial ties to Musk. The AFT also asked the SEC to reverse the “fast entry” rule that lets companies join major indexes just 15 days after going public.
Musk retains over 82% voting control post-offering. Tesla owns 18.99 million SpaceX shares valued at $2.56 billion at the IPO price. xAI purchased $269 million worth of Tesla Megapacks in April. The interlocking web of Musk companies is unusual for a public filing of this scale.
Pricing is set for June 11. Trading starts June 12. How SPCX trades will set a benchmark for every other frontier AI company considering public markets. Anthropic confidentially filed for its own IPO on June 1. The signal from SpaceX’s reception will ripple across the sector.